Gold futures dip as dollar steadies

New York (Feb 19)  Gold futures fell modestly Monday, giving up part of last week’s gain, as a steadier dollar weighed on the metal, and as the Presidents Day holiday in the U.S. gave many traders the session off.

April gold GCJ8, -0.50% lost $5.40, or 0.4%, to $1,350.80 an ounce in electronic trading, while March silver SIH8, -0.49% shed a nickel, or 0.3%, to $16.66 an ounce.

The drop came as the dollar was steady to slightly higher against major rivals.

A weaker buck can boost commodities priced in dollars, because it makes them cheaper to buy for holders of other currencies. Gold has gained about 9% over the past 12 months, as the ICE U.S. Dollar Index DXY, +0.17% has lost 12%.

On Friday, gold futures settled up by 0.1% at their highest level in about three weeks, helped by an ongoing slump for the dollar.

Analysts were continuing to track developments tied to Friday’s indictment of 13 Russians for violating U.S. laws to interfere with the 2016 elections. Geopolitical worries often can send investors toward gold and other investments that are viewed as havens.

“A continued selloff in the dollar and more headlines over Russia could see gold bulls target $1,366 in the near term,” said Jasper Lawler, head of research at London Capital Group, in a note Monday.

American financial markets are closed for Presidents Day, and there are no U.S. economic releases expected, as federal agencies are shuttered.

MarketWatch